Abstract

     During the last decades, organizations worldwide have replaced their fragmented and home-grown information systems with standardized Enterprise Systems that span the entire organization. The logics embedded in Enterprise Systems, such as a centralized and integrated view on the firm, standardized organization-wide working processes, and data sharing, may or may not be congruent with the cultural context of the user organization. Especially in case of a limited alignment, the adoption and full use of the Enterprise System will require specific attention from implementers. By developing a theoretical explanation of how responses to Enterprise Systems are influenced by cultural values, we contribute to the development of a cultural alignment theory of Enterprise Systems. Drawing on Hofstede’s cultural values framework, we analysed 85 published cases from firms operating in different cultural contexts, which resulted in the modelling of two contrasting archetypical cultural profiles: one that is more, and one that is less, receptive to the logics embedded in Enterprise Systems. Our model provides implementers with the necessary insights to develop implementation strategies that take the cultural context into account.

Introduction

     For the last decades, the use of packaged integrated software solutions, so-called Enterprise Systems (ES), has expanded at the expense of custom-made systems. Enterprise Systems are commercial software packages that enable the integration of transaction-oriented data and business processes throughout an organization (Davenport, 1998). Although the technology of Enterprise Systems has improved over the years due to cloud platforms, increased connectivity, improved user-friendliness, and mobile access, the large-scale adoption and effective use of Enterprise Systems is an ongoing concern since the ‘one size fits all’ logic of Enterprise Systems does not always match specific and sometimes idiosyncratic needs present in organizations (Strong & Volkoff, 2010; Berente, Lyytinen, Yoo, & Maurer, 2019). User-friendly screen layouts cannot resolve the incompatibility between the system and the organization.

     Enterprise systems affect many aspects of a company’s internal and external operations, and their successful deployment is critical to organizational performance and survival. The case for ensuring successful implementation is evident since the costs and risks of these technology investments rival their potential payoffs. Many of the problems linked with ES implementation are related to a misfit of the system with the characteristics of the internal or external context of the organization (Kohli & Kettinger, 2004; Boonstra, 2006; Strong & Volkoff, 2010; Berente et al., 2019). The logics that are embedded in Enterprise Systems can be characterized as a centralized and integrated view of the firm, disciplined and standardized organization-wide working processes, data sharing, transparency, management control, and top-down implementation approaches (Soh et al., 2000, Strong and Volkoff, 2010). One important contextual factor of ES implementations is the culture (Soh et al., 2000), referring to the dominant national, regional, organizational, departmental, or occupational culture of the adopting organization, which to some extent will fit or misfit with the logics embedded in an Enterprise System.

Conclusion

     This study has examined how the adoption of Enterprise Systems implementations is influenced by cultural values. By doing so, we contribute to the development of a cultural alignment theory of Enterprise Systems. The logics embedded in Enterprise Systems can be characterized as a centralized and integrated view of the firm, disciplined and standardized organization-wide working processes, data sharing, transparency, management control, and top-down implementation approaches. These logics may or may not be congruent with the cultural values of the user organization. Using a case survey approach and drawing on Hofstede’s cultural values framework, we analysed 85 published cases from firms operating in different cultural contexts.

     The main theoretical contribution is that we develop a model for how specific cultural values trigger certain adoption antecedents that result in adoption behaviours. The case survey data resulted in the modelling of two contrasting cultural profiles: one that is accepting and one that is resisting the logics embedded in Enterprise Systems. In the accepting profile, a combined long-term orientation and collectivism help create the facilitating conditions for successful ES implementation. At the same time, a high power distance triggers the social influence, which makes ES adoption more likely. Conversely, in the resisting profile, a short-term orientation hinders implementing an Enterprise System, and it negatively affects the facilitating conditions necessary for ES implementation. Further, this resisting profile incorporates four cultural values that may boost resistance towards the implementation: high power distance, high uncertainty avoidance, individualism, and masculinity. The main practical contribution is that cultural values have to be taken into account when Enterprise Systems are introduced. We also provide project managers with insights to develop culture-sensitive implementation strategies.